EU agrees budget deal - for 2006

The Brussels budget for 2006 has been agreed at a level substantially higher than expenditure projections made by British EU presidency for 2007 to 2013.

MEPs on Thursday adopted the EU's annual spending for 2006 as Europe’s leaders head to Brussels for bitter spending battles over financing for the next budgetary period.

The European Parliament’s decision is especially significant as 2006 EU spending levels will become the basis for annual budget deals should EU governments fail to agree financing for 2007 to 2013.

This year’s Brussels budget is set at an overall expenditure of €121.2 billion, a costing set at 1.09 percent of European GNI.

Under controversial UK proposals for EU spending between 2007 to 2013 the overall cash available is capped at 1.03 per cent.

To hit 2006 levels of spending in the seven year period the UK would have to put an extra €50bn in the pot – sums unlikely to emerge at a two day summit in Brussels.

The passage of the 2006 budget has been bumpy and a follows compromise deal at the latest possible moment between national governments, the European Commission and MEPs.

The agreement has been hailed by the commission ahead of the difficult budget talks in Brussels on December 15 and 16.

“The adoption of EU 2006 budget by the European Parliament sends a positive signal,” said a statement.

“It proves that despite the tough negotiations on the financial framework for 2007-2013, the union is capable of taking important decisions.”

“The message to the heads of states and governments is clear: consensus is possible.”

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